The Bluffton Exempted Village School District has submitted a five-year financial forecast to the Ohio Department of Education as approved by the board of education in November 2021 (full report at Ohio Board of Education).
The report includes both data and notes providing the assumptions used for financial projections including revenue, expenditures and changes in fund balances for 2019-2026.
The assumptions section of the report includes the following:
REVENUES
Real Estate Tax
Allen County experienced a re-appraisal in Calendar Year 2015 to be collected in Calendar Year 2016. Revenue for Bluffton Schools increased 10% in FY2016 due to the re-appraisal (5.8%) and the renewed emergency levy (4.2%). The next re-appraisal will take place in Calendar Year 2021 to be collected in Calendar Year 2022. On May 6, 2014 the emergency tax levy was renewed with an increase back to the original 4.9 mills from 1999. This levy will collect $714,392 starting in calendar year 2015 and will be collected through the first half of FY2025.
Personal Property Tax
The Tangible Personal Property Tax on business inventory, manufacturing machinery and equipment, and furniture and fixtures is no longer levied and collected. Any amounts shown here are collections from delinquent personal property taxes.
Unrestricted Grants-In-Aid
The Unrestricted Grants-In-Aid is the state foundation estimate for Bluffton Exempted Village School District and the amount received from Casino Taxes. The current state budget (HB110) runs through FY2023. HB110 is also known as the Fair School Funding Plan and will not be released until December 2021, which is after the filing deadline for this 5 Year Forecast. FY2022 is based on the most recent information available from the Ohio Department of Education. With the uncertainty that comes with state funding, the state aid has been projected flat through 2026.
Property Tax Allocation
This number includes Homestead and Rollback Revenue along with the Tangible Personal Property (T.P.P.) Fixed Sum Tax Reimbursements. The T.P.P. Fixed Sum Reimbursements will be phased out by the end of FY2022.
Other Revenue
This area includes interest, open enrollment, class fees, tuition and the Medicaid to Schools Program. The dollar amount remains constant over the term of the forecast. The open enrollment students are in the elementary and middle school and are projected to remain with the district.
All Other Financing Sources
This includes any miscellaneous revenue that would be received.
EXPENDITURES
Personal Services
The personal services through FY2024 are based on the negotiated agreements. FY2025 and FY2026 are budgeted at a 2% increase with a step.
Employee Retirement/Insurance Benefits
The amounts for employee retirement and insurance benefits are based on negotiated agreements. The District has two insurance plans (MDHP and HDHP). These plans can be adjusted with the input of the Plan Advisory Committee (PAC) to help offset premium increases. Calendar year 2022 reflects a 2% increase in insurance premiums. Each calendar year, thereafter, reflects a 10% premium increase. This area will need to be closely monitored because insurance continues to be a wild card at this point.
Purchased Services
This area covers all utilities, building supplies and building repairs. The term of this forecast reflects a 3% growth.
Supplies and Materials
The district has projected this line item flat over the term of the forecast.
Capital Outlay
The district purchases only the absolute necessary items in the area of capital outlay. The District has renewed a three year ½% Income Tax Permanent Improvement Levy through calendar year 2022 to help with building maintenance.
Other Objects
This area includes board liability insurance, auditor and treasurer fees, county board deductions and audit charges. The term of this forecast reflects a 3% growth.
Operating Transfers-Out
This area includes activity fund transfers, a lunchroom transfer, 009 (USS) funds transfers and a HB264 loan repay. The last HB264 loan payment is in July 2021.
Note: This Five Year Forecast was prepared based on the information that is known at this point in time.
